ANNUAL REPORT 2010
About Saskatchewan Scrap Tire Corporation The three phases to the program Phase 1 – Current Generation Tires
Saskatchewan generates 1,000,000 scrap tires annually of passenger car tire equivalents (PTE). The scrap tire program ensures these tires are collected and processed. Prior to the SSTC program, almost all of these tires ended up in our local landfills as domestic waste.
Phase 2 – Municipal Landfill Cleanup
This phase of the program involved removing tires from every landfill in Saskatchewan. When the work wrapped up in 2010, SSTC had removed scrap tires from more than 300 landfill sites around the province - the equivalent of two million passenger tires. In exchange for the free clean up, municipalities were required to pass bylaws banning scrap tires from their landfill.
Phase 3 – Private Stockpiles
This phase of the program involves removing stockpiles of tires from private property. In the spring of 2010, the Saskatchewan Scrap Tire Corporation launched a regional pilot project to test the effectiveness of various methods to complete this phase of the program. The full launch of the program is expected to begin in 2012.
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The Saskatchewan Scrap Tire Corporation (SSTC) is a non-profit, non-government organization that delivers the province-wide tire recycling program. Since 1996, SSTC has diverted millions of used tires from the Saskatchewan waste stream and cleaned up decades worth of old tires from municipal landfills. These tires have been recycled into useful marketable items. Accountable to both its stakeholders and the public, the SSTC manages the collection of scrap tires for recycling and reuse in order to eliminate disposal in local landfills. Consumers make all of this possible by paying a recycling fee when they buy new tires. The fee paid by consumers on the purchase of a new tire is remitted to SSTC. These funds are then used to cover the cost of collecting and recycling the scrap tires. There are more than 1,200 participating retailers, four tire collection companies and two scrap tire processors.
Since inception SSTC has • Diverted more than 16 million tires from landfill disposal • Removed historical scrap tire material from more than 300 landfills • Provided funding to more than 50 communities through the Community Demonstration Grant Program • Put more than 550,000 tires into Saskatchewan roadways as rubberized asphalt paving • Removed tire stockpiles from private and farm land in 48 municipalities through the Black Gold Rush pilot project.
Founded in 1996, The Saskatchewan Scrap Tire Corporation has recycled over 16 million tires in the province.
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Black Gold Rush pilot project With more than 2.8 million pounds of scrap tires collected over 12 weeks, The Saskatchewan Scrap Tire Corporation’s Phase 3 – Black Gold Rush pilot project proved successful in 2010. Forty-eight municipalities in the southwest region of the province took part in the Black Gold Rush pilot project and helped to make it such a success.
Black Gold Rush by the numbers
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12 14 48
Weeks the pilot project ran
Municipalities oversaw the main objectives of the project, including: establishing a drop off location, choosing drop off dates and acting the main point of contact between the community and the SSTC. Service Groups also played a significant role in the Black Gold Rush pilot assisting the municipalities with their sites and the ratepayers with their tire drop-offs, SSTC paid out in excess of $61,000 to the 14 service groups. The total cost of the project was $489,344. Now that the Black Gold Rush pilot project is complete, the SSTC will evaluate the outcome and plan for the full launch of Phase 3 in 2012.
57,713 Number of scrap tires collected
Service groups that participated
Participating municipalities
Pounds of scrap tires removed from private and farm land
Above: Volunteers at the R.M. of Lone Tree participate in the Black Gold Rush pilot project. Left: Landfill clean-up in North Battleford completed phase two of the Scrap Tire Corporation’s program.
Phase 2 Completion The North Battleford landfill was the last landfill to be cleaned, thus completing Phase 2 of the Scrap Tire Corporation’s program. The North Battleford site had four piles with an estimated 200,000 scrap tires to be removed. Once cleaned, more than 6.7 million pounds of scrap tires had been removed. In total more than 300 landfills have been cleaned by the SSTC in the past ten years. Completion of Phase 2 allowed for the SSTC to shift focus to Phase 3- the cleanup of scrap tire stockpiles on private and farm land.
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2010 Highlights SSTC saw the completion of Phase 2 - Municipal Landfill Cleanup. The North Battleford landfill was the final site to be cleared. More than 6.7 million pounds of scrap tires were removed. SSTC funded the pilot project of Phase 3—The Black Gold Rush. Forty-eight municipalities participated and more than 2.8 million pounds of scrap tires were removed from private yards and farm land. SSTC continued providing funding through its Community Demonstration Grant Program. Five communities in Saskatchewan were given funding for projects that involved an innovative use for recycled rubber products. SSTC funded a pilot project to collect bicycle tires in 2010. More than 3,500 tires were collected and recycled. During the 2010 construction season, the Saskatchewan Ministry of Highways and Infrastructure used crumb rubber asphalt pavement on about 313 km of various provincial highway lanes. That translates into an estimated 257,300 tires recycled. The SSTC is working with the Communities of Tomorrow to further the research and use of recycled scrap tire material in infrastructure rehabilitation in Saskatchewan. In 2010 SSTC participated in the Green Street Project in Saskatoon which saw over 700 cubic meters of scrap tire material used in the construction of a road.
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Turf system that uses recycled tires at Leibel Field in Regina, Saskatchewan.
2010 Statistics Tires Sold (by Tire):
Tires Collected (by Tire):
Total: 1,428,553
Total: 786,260
Passenger Car/Light Truck 1,233,919 Medium Truck 154,351 Ag Tire 34,896
OTR 4,355 OTRII 1,032
Passenger Car/Light Truck 676,946 Medium Truck 97,496 Ag Tire 10,513
OTR 1,204 OTRII 101
Recycled (by Pound)
Wa s 3,2 te Fi 44 bre ,90 8
Wa 4,6 ste S 03 teel ,82 2
Pr 67 oduc 5,9 t 05
Mu 2,5 lch 50 64
Ti r 5,1 e Sh 06 red ,84 6
Cr um 11 b Ru ,14 bb 5,4 er 02
Total: 25,869,834
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Financial Statements Management’s Responsibility To the Members of Saskatchewan Scrap Tire Corporation: Management is responsible for the preparation and presentation of the accompanying financial statements, including responsibility for significant accounting judgments and estimates in accordance with Canadian generally accepted accounting principles and ensuring that all information in the annual report is consistent with the statements. This responsibility includes selecting appropriate accounting principles and methods, and making decisions affecting the measurement of transactions in which objective judgment is required. In discharging its responsibilities for the integrity and fairness of the financial statements, management designs and maintains the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets are safeguarded and financial records are properly maintained to provide reliable information for the preparation of financial statements. The Board of Directors and Finance Committee are composed entirely of Directors who are neither management nor employees of the Corporation.
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The Board is responsible for overseeing management in the performance of its financial reporting responsibilities, and for approving the financial information included in the annual report. The Board fulfils these responsibilities by reviewing the financial information prepared by management and discussing relevant matters with management, and external auditors. The Board is also responsible for recommending the appointment of the Corporation’s external auditors. Meyers Norris Penny LLP, an independent firm of Chartered Accountants, is appointed by the board to audit the financial statements and report directly to them; their report follows. The external auditors have full and free access to, and meet periodically and separately with, both the Board and management to discuss their audit findings. February 18, 2011
Theresa McQuoid Management
Marni Moldovan Accountant
When retailers put new tires on a consumer’s vehicle, they also hold and store the old tires until they are collected.
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Auditors’ Report Independent Auditors’ Report To the Board Members of Saskatchewan Scrap Tire Corporation: We have audited the accompanying financial statements of Saskatchewan Scrap Tire Corporation as at December 31, 2010, which comprise of the balance sheet as at December 31, 2010, the statement of revenue, expenses and reserve and the statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Saskatchewan Scrap Tire Corporation as at December 31, 2010 and its financial performance and cash flows for the year then ended in accordance with Canadian generally accepted accounting principles. Regina, Saskatchewan February 18, 2011
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Chartered Accountants
Saskatchewan Scrap Tire Corporation Balance Sheet
As at December 31, 2010 2010
2009
1,566,363 41,992 151,736 36,816
1,791,058 76,026 151,736 11,742
1,796,907
2,030,562
Assets
Current Cash and cash equivalents Accounts receivable Funds held in trust (Note 3) Prepaid expenses and deposits
Capital Assets (Note 4) Investments (Note 7)
32,377
41,811
384,338
349,857
2,213,622
2,422,230
539,794 29,610 151,736
401,888 20,131 151,736
721,140
573,755
Liabilities
Current Accounts payable and accruals Goods and services tax payable Funds held in trust (Note 3) Commitments (Note 6)
Reserves
Unrestricted reserve
(355,993)
Stabilization reserve (Note 5)
-
1,848,475
1,848,475
2,213,622
2,422,230
Approved on Behalf of the Board Director
Director
The accompanying notes are an integral part of these financial statements
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Saskatchewan Scrap Tire Corporation Statement of Revenue, Expenses and Reserve For the year ended December 31, 2010
REVENUE Tire recycling fee Other Unrealized gain on investments (Note 2)
RECYCLING COSTS Recycling fee commission Processors and Collector costs Professional fees Special projects
PROGRAM ADMINISTRATION EXPENSES Advertising and promotion Amortization Bad debts Computer support Conferences Directors' remuneration Equipment rental Insurance and licenses Meeting expense Office operations Postage Printing and publications Professional fees Recycle Sask Rental Salaries, wages and benefits Stationary and supplies Telephone, fax and internet Travel
Net (loss) income Unrestricted Reserve, beginning of year
2009
7,075,674 56,564 23,155
6,561,096 43,345 45,898
7,155,393
6,650,339
129,732 5,153,704 155,805 1,559,802
120,505 4,932,774 168,449 657,270
6,999,043
5,878,998
45,354 11,860 18,916 29,553 6,633 14,686 5,271 6,474 2,146 6,013 4,083 28,950 56,031 11,676 30,581 212,260 6,724 8,731 6,401
73,904 15,917 12,096 19,626 5,683 15,000 4,036 5,046 3,025 5,325 5,243 53,776 35,693 14,247 27,407 134,952 8,707 6,154 9,384
512,343
455,221
(355,993)
316,120
-
Transitional Adjustment to Reserve
-
Transfer to Stabilization Reserve (Note 5)
-
Unrestricted Reserve, end of year
(355,993)
The accompanying notes are an integral part of these financial statements
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2010
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(316,120) -
Saskatchewan Scrap Tire Corporation Saskatchewan Scrap Tire Corporation Statement of Cash Flows For the year ended December 31, 2010 Statement of Cash Flows For the year ended December 31, 2010 2010 2009 2010 2009
Cash provided by (used for) the following activities Operating activities Cash provided by (used for) the following activities Cash received from customers Operating activities Cashreceived paid to suppliers Cash from customers Cashpaid paidtotosuppliers employees Cash Interest Cash paidreceived to employees Interest received
7,090,793 6,476,547 (7,146,038) 6,476,547 (6,305,069) 7,090,793 (212,260) (6,305,069) (134,952) (7,146,038) 56,564 43,345 (212,260) (134,952) 56,564 43,345 (210,941) 79,871 (210,941) 79,871
Investing activities Purchases of capital assets Investing activities Proceeds of oncapital disposition of capital assets Purchases assets Purchaseon ofdisposition investments Proceeds of capital assets Purchase of investments
(2,427) (2,427)(11,327) (11,327) (13,754) (13,754)
(Decrease) increase in cash resources (Decrease) increase in cash resources Cash resources, beginning of year Cash resources, beginning of year Cash resources, end of year Cash resources, end of year Cash and cash equivalents consist of: Cash Cash and cash equivalents consist of: Short-term investments Cash Short-term investments Total Total
(2,065) (2,065)(12,281) (12,281) (14,346) (14,346)
(224,695) (224,695) 1,791,058 1,791,058 1,566,363 1,566,363
65,525 65,525 1,725,533 1,725,533 1,791,058 1,791,058
637,832 928,531 637,832 928,531 1,566,363 1,566,363
879,012 912,046 879,012 912,046 1,791,058 1,791,058
The accompanying notes are an integral part of these financial statements The accompanying notes are an integral part of these financial statements
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Saskatchewan Scrap Tire Corporation Notes to the Financial Statements For the year ended December 31, 2010
1.
Incorporation and commencement of operations
1. Incorporation and commencement of operations Saskatchewan Scrap Tire Corporation is incorporated under the Not-for-profit Corporation's Act and is exempt from income taxes. The purpose of the Corporation is to establish and manage a mandatory scrap tire waste
reduction program on behalf of its members set out in The Scrapthe TireNot Management Regulations. Act Saskatchewan Scrap Tire Corporation isas incorporated under for profit Corporation’s and is exempt from income taxes. The purpose of the Corporation is to establish and manage a 2. Accounting policies mandatory scrap tire waste reduction program on behalf of its members as set out in The Scrap The financial statements have been prepared in accordance with Canadian generally accepted accounting Tire Management Regulations. principles and include the following significant accounting policies: Revenue recognition
2. Accounting policies
Revenue from tire recycling fees is recognized when retailers submit reports for tires sold. All other revenue is recognized in the period it is earned.
The financial statements have been prepared in accordance with Canadian generally accepted Cash and cash equivalents accounting principles and include the following significant accounting policies:
Cash and cash equivalents include balances with banks and short-term investments with maturities of three months or less. Cash subject to restrictions that prevent its use for current purposes is included in restricted
Revenue recognition cash. Short-term investments consist of GICs with interest rates ranging from 1.65% to 1.96%, all maturing on Decemberfrom 5, 2011. Revenue tire recycling fees is recognized when retailers submit reports for tires sold. All other revenue is recognized in the period it is earned. Capital assets Capital assets are initially recorded at cost. Amortization is provided using methods and rates intended to
Cash andthe cash amortize cost equivalents of assets over their estimated useful lives. Cash and cash equivalents include balances with banks and short term investments with maturities of three months or less. Cash subject to restrictions that prevent its use for current purposes is Method Rate included in restricted cash. Short-term investments consist of GICs with interest rates ranging from Computer equipment declining balance 30 % 1.65%Computer to 1.96%, all maturing on December 5, 2011. 100 % software declining balance Office equipment
declining balance
20 %
Capital assets Capital assets are initially recorded isattaken cost.atAmortization provided In the year of acquisition, amortization one-half of theisabove rates.using methods and rates intended to amortize the cost of assets over their estimated useful lives. Measurement uncertainty The preparation of financial statements in conformity with Canadian generally accepted accounting principles
requires management to make estimates Method and assumptions that affect theRate reported amounts of assets and Computer equipment declining balance liabilities and disclosure of contingent assets and liabilities at the date of 30 the % financial statements, and the reported amounts of revenues and expenses the reporting period. Accounts receivable are stated after Computer software declining during balance 100 % the evaluation as to their collectability and an appropriate Office equipment declining balance allowance for doubtful 20 % accounts is provided when necessary. Amortization is based on the estimated useful lives of the assets. In the year of acquisition, amortization is taken at one half of the above rates. Measurement uncertainty The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Accounts receivable are stated after the evaluation as to their collectability and an appropriate allowance for doubtful accounts is provided when necessary. Amortization is based on the estimated useful lives of the assets. 6
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Saskatchewan Scrap Tire Corporation Notes to the Financial Statements For the year ended December 31, 2010
f operations
Financial instruments is incorporated under the Not-for-profit Corporation's Act and is exempt e Corporation is to establish and manage a mandatory scrap tire waste mbers as set out Saskatchewan in The Scrap TireScrap Management Regulations.has Tire Corporation
classified cash, investments and funds held in trust as financial instruments held for trading. epared in accordance with Canadian generally accepted accounting Accounts nificant accounting policies:receivables and accounts payables are classified as loans and receivables and other liabilities respectively. Held for trading financial ognized when retailers submit reports for tires sold. All other revenue is assets and liabilities are financial instruments that are acquired or incurred principally for the purpose of selling or repurchasing the instrument ances with banks with maturities three inand the short-term near term.investments These instruments areofinitially tions that prevent its use for current purposes is included in restricted recognized at their fair value. Fair value is f GICs with interest rates ranging from 1.65% to 1.96%, all maturing on approximated by the instrument’s initial cost in a transaction between unrelated parties. Held for trading financial instruments are carried at fair cost. Amortization is provided using methods and rates intended to stimated useful value lives. with both realized and unrealized gains and losses included in net income. Financial assets and liabilities that the Corporation has recorded ethod Rate as loans and receivables and other liabilities are ning balance 30 % measured at amortized cost. During the year there ning balance 100 % was an gain of $23,155 recognized on ning balance 20 unrealized % investments.
is taken at one-half of the above rates.
Recent accounting pronouncements
in conformity with Canadian generally accepted accounting principles Financial instruments section 3862 es and assumptions that affect the reporteddeferral amounts of of assets and assets and liabilities the date of the financial statements, and the andat3863 enses during the reporting period. Accounts receivable are stated after and an appropriate allowance for doubtful accounts is provided when On lives December 2006, the Canadian Institute of he estimated useful of the assets.
Chartered Accountants (CICA) issued Section 3862 Financial Instruments – Disclosures and Section 3863 Financial Instruments – Presentation to replace Section 3861 Financial Instruments – Disclosure and Presentation. The effective date for these new Sections was for interim and annual financial statements with fiscal years beginning on or after October 1, 2007, with earlier adoption permitted. However, in light of the uncertainty regarding the future direction in setting standards for not-for-profit organizations, the CICA released a decision to allow deferral of Sections 3862 and 6 3863 for this sector. Not-for-profit organizations should continue to apply Section 3861.
Scrap tires are processed into a safe, reusable format and put to many good uses. Among the products currently being made from recycled tires are low-impact playground surfaces, athletic field turf, street and road paving material, interlocking patio bricks, shingles, parking curbs, livestock feeders, mats and a whole lot more.
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Saskatchewan Scrap Tire Corporation Notes to the Financial Statements For the year ended December 31, 2010
1.
Incorporation and commencement of operations
Canadian accounting standards for not-for-profit organizations
Saskatchewan Scrap Tire Corporation is incorporated under the Not-for-profit Corporation's Act and is exempt from income taxes. The purpose of the Corporation is to establish and manage a mandatory scrap tire waste Inreduction Octoberprogram 2010, the Accounting Standards Board approved the accounting standards for on behalf of its members as set out in(AcSB) The Scrap Tire Management Regulations. 2.
private sector not-for-profit organizations (NFPOs) to be included in Part III of the CICA HandbookAccounting policies Accounting (“Handbook”). Part III will comprise: statements haveseries” been prepared in accordance generally accepted accounting - The financial The existing “4400 of standards dealing with withCanadian the unique circumstances of NFPOs, principles and include the following significant accounting policies: currently in Part V of the Handbook; and recognition - Revenue The new accounting standards for private enterprises in Part II of the Handbook, to the from tire fees apply is recognized when retailers submit reports for tires sold. All other revenue is Revenue extent thatrecycling they would to NFPOs. recognized in the period it is earned.
Cash andfor cash equivalents Effective fiscal years beginning on or after January 1, 2012, private sector NFPOs will have the option to adopt either Part III balances of the Handbook International Financial Reporting Standards Cash and cash equivalents include with banksorand short-term investments with maturities of three months Earlier or less. adoption Cash subject to restrictions prevent its use for current purposes is included in restricted (IFRS). is permitted. Thethat Corporation expects to adopt Part III of the Handbook cash. Short-term investments consist of GICs with interest rates ranging from 1.65% to 1.96%, all maturing on as its new financial December 5, 2011. reporting standards. The Corporation has not yet determined the impact of the adoption of Part III of the Handbook on its financial statements. Capital assets
Capital held assetsinare initially recorded at cost. Amortization is provided using methods and rates intended to 3. Funds trust amortize the cost of assets over their estimated useful lives.
Funds held in trust represent a security bond being held for certain processors. Method Rate Computer declining balance 30 % 4. Capital assetsequipment Computer software Office equipment
declining balance declining balance
100 % 20 %
2010 2009 Accumulated Net Book Net Book In the year of acquisition, amortization is taken at one-half of the above rates. Cost amortization value value Measurement uncertainty Computer equipment 121,051 102,838 18,213 23,974 Computer software 17,491 17,102 generally accepted 389 618 The preparation of financial statements in conformity with Canadian accounting principles requires management to make estimates and assumptions38,408 that affect the reported13,775 amounts of assets17,219 and Office equipment 52,183
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Accounts receivable are stated after the evaluation as to their collectability 190,725 32,377 is provided41,811 and an appropriate158,348 allowance for doubtful accounts when necessary. Amortization is based on the estimated useful lives of the assets.
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All retailers in the province that sell new tires and/or vehicles/ equipment with new tires must participate in the SSTC’s tire recycling program.
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Saskatchewan Scrap Tire Corporation Notes to the Financial Statements For the year ended December 31, 2010
1.
Incorporation and commencement of operations
5. Stabilization reserve
Saskatchewan Scrap Tire Corporation is incorporated under the Not-for-profit Corporation's Act and is exempt from income taxes. The purpose of the Corporation is to establish and manage a mandatory scrap tire waste Inreduction 2006, the Boardoninternally theScrap establishment of a stabilization program behalf of restricted its membersfunds as setthrough out in The Tire Management Regulations.reserve 2.
to ensure that funds are available to meet financial obligations of the Corporation. Specifically, Accounting policies the Board wants to ensure that in the event of a windup that the Corporation would have adequate The financial statements haveinbeen prepared in accordance with Canadian generally accepted accounting funds available to proceed an orderly manner. principles and include the following significant accounting policies:
Revenue recognition The amount of $0 (2009 - $316,120) was transferred to the reserve as at December 31, 2010 and tire recycling is recognized retailers submit reports for tires sold. All other revenue is isRevenue subject from to change at thefees discretion of thewhen Board of Directors. The balance includes $32,377 recognized in the period it is earned. (2009 - $41,811) invested in Capital Assets. Cash and cash equivalents
2010
2009
Cash and cash equivalents include balances with banks and short-term investments with maturities of three months or less. Cash subject to restrictions that prevent its use for current purposes is included in restricted Stabilization reserve, openingconsist balance 1,848,475 cash. Short-term investments of GICs with interest rates ranging from 1.65% to 1.96%, all1,532,355 maturing on December 5, unrestricted 2011. Transfer from reserve - 316,120
Capital assets Stabilization ending balance 1,848,475 1,848,475 Capital assetsreserve, are initially recorded at cost. Amortization is provided using methods and rates intended to amortize the cost of assets over their estimated useful lives.
6. Commitments
Computer equipment
Method
Rate
declining balance
30 %
Computer software declining balance 100 % with estimated minimum annual The Corporation has entered into various lease agreements Office equipment declining balance 20 % payments as follows: In the year of acquisition, amortization is taken at one-half of the above rates. 2011 2,595 Measurement uncertainty 2012 2,547 of financial statements The preparation 2013 2,028 in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities2014 1,098 assets and liabilities at the date of the financial statements, and the and disclosure of contingent reported amounts of revenues and expenses during the reporting period. Accounts receivable are stated after the evaluation as to collectability and an appropriate allowance doubtful is provided when The Corporation is their currently in negotiations for the office lease.forIn 2010, accounts the Corporation paid a necessary. Amortization is based on the estimated useful lives of the assets. monthly rate of $975 for office space.
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Saskatchewan Scrap Tire Corporation Notes to the Financial Statements For the year ended December 31, 2010
f operations
7. Financial instruments is incorporated under the Not-for-profit Corporation's Act and is exempt e Corporation is to establish and manage a mandatory scrap tire waste mbers as set out in The Tire Management TheScrap Corporation as part ofRegulations. its operations carries
a number of financial instruments which include cash and cash equivalents, accounts receivable, epared in accordance with Canadian generally accepted accounting accounts payable and accruals. The nificant accounting investments, policies: carrying amount of cash and cash equivalents, accounts receivable and accounts payable and ognized when retailers submit reports for tires sold. All other revenue is accruals approximates their fair value, due to their relatively short term maturities. Investments are recorded at fair market value. The cost of ances with banks and short-term at investments of (Mutual three investments year end with wasmaturities $335,434 tions that prevent its use for current purposes is included in restricted Fund) and in 2009 the cost was $297,043. is f GICs with interest rates ranging from 1.65% to 1.96%, all maturingIton management’s opinion that the Corporation is not exposed to significant interest, currency or credit risks arising from these financial instruments cost. Amortization is provided using methods and rates intended to except as otherwise disclosed. The Corporation stimated useful lives. is exposed to market fluctuations in investments. The Corporation manages the risk by limiting ethod Rate its amounts invested in investments that ning balance 30 % significantly fluctuate based on market changes. ning balance 100 %
ning balance
20 %
8. Capital disclosure of the above rates. is taken at one-half The Corporation’s objective when managing capital is to maintain a sufficient reserve in conformity with Canadian generally accepted accounting principles they can continue es and assumptionsfund that base affect to theensure reported amounts of assets to and assets and liabilitiescover at the the datesignificant of the financial statements,relating and theto expenditures enses during the reporting period. Accounts receivable are stated after the Corporation. The Corporation transfers and an appropriate allowance for doubtful accounts is provided when the stabilization reserve as he estimated usefulsurpluses lives of theto assets. disclosed in Note 5. 9. Comparative figures Certain comparative figures have been reclassified to conform to current year presentation.
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Thanks to the support of Saskatchewan people, we’ve built one of the most successful tire recycling programs in Canada.
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CONTACT US
Saskatchewan Scrap Tire Corporation Mailing Address: Box 1936 Regina, Saskatchewan S4P 3E1 Street Address: 420 - 2220 12th Avenue Regina, Saskatchewan S4P 0M8 Phone: (306) 721-8473 (721-TIRE) Fax: (306) 721-1585 E-mail: info@scraptire.sk.ca
www.scraptire.sk.ca